N. Sumatra faces problems in solving acute power shortage
Apriadi Gunawan, The Jakarta Post, Medan
A chronic electricity deficit is plaguing North Sumatra province, with the power deficit estimated to have reached 1,000 megawatts (MW).
General manager of power generation and distribution for the state electricity company PT PLN northern Sumatra division, Albert Pangaribuan, said that the company was still having difficulties in overcoming the power crisis.
Albert said that so far, PLN will only be able to generate 82 MW of the 1,000 MW deficit from the Lau Renun hydropower station in Dairi regency, which is slated to start operation in 2005.
Albert explained that besides power provided by Lau Renun, PLN had also signed agreements with foreign investors to establish power stations with maximum output of 400 MW each.
One of the projects under construction at the moment is the Labuhan Angin steam-powered station in Central Tapanuli regency, in cooperation with Chinese investors.
"Although there are plans to add another 400 MW, we're still going to be short 600 MW until 2010," explained Albert on the current electricity situation in North Sumatra to the Coordinating Minister for the Economy Aburizal Bakrie and PLN President Director Eddi Widiyono at the Sicanang power station in Belawan.
Eddi said that the capacity of PLN's power generators was limited, while new stations were still being built. Due to this, PLN could not meet customers increasing demands in North Sumatra and this had prompted PLN to seek cooperation with the private sector to build new stations.
Based on PLN data, the number of consumers in North Sumatra had reached more than two million, consisting of household and industrial clients, and the number keeps growing. If there is no new investment in power plants, it is feared that the province will not be able to meet new demand, he said.
Eddi said that he had noticed that private parties that had signed agreements with PLN were still having problems in financing the projects, causing many projects, such as the one in Sibolga, to be stalled.
According to Eddi, PLN has encouraged foreign investors to build new power stations in Indonesia, including in North Sumatra.
"Now with Government Regulation No. 3, and Ministerial Regulation No. 9 and No. 10 to regulate joint-ventures with private parties, if they can follow the guidelines, we'll welcome them," said Eddi.
Eddi said that besides facing power generating problems, PLN was also having problems in meeting coal, oil and gas supplies. He added that PLN's performance had been severely affected by the drop in fuel supplies to power stations.
"It's not due to Pertamina's mistakes, but looking at the high price of fuel at this moment, we realize that fossil fuels will be scarce in the future," he said, while encouraging people to save electricity, considering the soaring price of fuels now.
In response to the continuing power crisis in North Sumatra, Coordinating Minister for the Economy Aburizal Bakrie had urged PLN to seek as many investors as possible to build power stations.
"Invite foreign and local private companies to immediately construct power generating stations here. If there is more than one party, then put the projects out on tender," said Aburizal, while promising to streamline bureaucracy.
In relation to the scarcity and high cost of fuels, Aburizal urged PLN to use coal and gas in its future plans.